Edward M. Kennedy: “I urge the Senate to reject this amendment. This proposal aims to reduce the deficit, but it cannot pass the truth in…”

“I urge the Senate to reject this amendment. This proposal aims to reduce the deficit, but it cannot pass the truth in advertising test--because it is also a proposal to block comprehensive health care reform. Virtually every Medicare cut proposed in this amendment has already been earmarked to help pay for the cost of health care reform under President Clinton's plan. A number of these cuts are included in the Chafee and Breaux-Durenberger bills as well. The effect of this amendment is simple: It raises the price of health reform for the American people by an additional $20 billion over the next 5 years. Deep cuts in Medicare in addition to those already contained under the health reform plan are simply not justified. Today, Medicare already pays hospitals 10 percent less than their actual cost of caring for elderly patients. Hospitals offset these gaps by charging other patients more. Further cuts in Medicare, as proposed by this amendment, will only make this problem worse. By contrast, comprehensive health reform restrains Medicare spending in the right way, holding the growth in Medicare payments to levels that are consistent with the private sector, taking into account the growing health needs of senior citizens and the disparity that already exists. That is what the President's plan does. But this amendment would say that parity is not important--the gap between Medicare payments and private sector payments must grow ever wider.”